Improving economic development among Islamic countries
Synonyms: Providing loans to Islamic nations
Encouraging trade among Islamic countries
Implementation: Established in 1974, the Islamic Development Bank fosters the economic development and social progress of member countries and Muslim communities. As of June 1993, the total resources for financing the ordinary operations of the Bank came to 3.319 billion dollars. The Islamic Development Bank finances development projects with interest free-loans, equity participation, leasing, instalment sale, and profit sharing. Apart from financing projects through these modes, the Bank also supports the development efforts of its member nations by providing finance in the form of technical assistance. 20 of the 45 member countries are least developed. The least developed member countries are given priority in respect of concessionary financing of the Bank (loan and technical assistance). Priority technical assistance is also provided to regional projects and member countries with high per capita income but with relatively greater need for technical support. Up to the end of June 1993, the share of the total amount of approved loans for least developed member countries was 60.2 percent, whilst 71.3 percent of the total amount of technical assistance went to the least developed member countries. The Bank has developed three schemes through which it provides financing for development projects in member countries, thereby playing a significant role in promoting trade among member countries. The three schemes are: Import Trade Financing Operations, Islamic Bank's Portfolio, and Longer-Term Trade Financing Scheme. The Bank provides a Special Assistance Account from which funds are provided for special operations, including among others, relief in conflicts and natural disaster situations, promoting Islamic causes, and scholarship programmes. Up to the end of June 1993, financing approved by the Bank for different operations totalled 11,053.47 Islamic Dinars for a total of 1925 operations. This breaks down into: 3410.62 million dollars for project financing; 78.57 million for 185 technical assistance operations in 36 member countries; 8735.89 million dollars for 782 Import Trade Financing Operations; 544.06 million dollars for 77 Islamic Bank's Portfolio operations in 16 countries; 363.00 million dollars for 133 Longer-Term Trade Financing Scheme operations; 407.95 million dollars for Special Assistance Operations, of which 284.98 million dollars for 136 operations in member countries and 106.50 million dollars for 144 operations for Muslim communities in non-member countries. The sectoral distribution of total ordinary operations up to the end of June 1993 is: industry and mining (30.6 percent); transport and communication (21.8 percent); agriculture and agro-industry (18.0 percent); utilities (16.4 percent). In recent years, the Bank has focused more on agriculture and social sectors.
Subjects: CreditTradeEconomicIslamDevelopment Reform
Type Classification: E: Emanations of other strategies